The market capitalization as of press time is standing at $202 billion and is struggling to maintain its levels above the $200 billion mark. Ever since the market hit over $300 billion a little more than a month ago, all that the market has seen ever since is decline and fall with rare sights of minor surges.
The struggle to float over the $200 billion mark is evident in the graph shown above. If the overall market is analyzed, it can be observed that due to the high dominance rate of BTC, i.e. 55% (As of press time) the fluctuations of the market capitalization are tightly tied to the fluctuations in BTC.
The blue line in the graph shows the performance of the market cap while the line in green shows the performance of BTC. It is evident that the two lines are almost shadows of each other. So for short term, it can be established that due to the high dominance rate of BTC, the surges or plunges seen by the premium currency would be reflected in the market cap.
Much of the valuation of BTC has to do with the approval of the ETF. The price of bitcoin first saw its dramatic plunge when the SEC decided to reject the first proposal presented by Winkelvoss brothers. The argument put forward by the regulatory committee was that there are a lot of possibilities for fraudulent and manipulative activities to be taken place on blockchain, cryptocurrency in particular, hence the exchange trade fund development is a risk. Due to this, institutions are becoming skeptical about diving into blockchain and crptocurrency.
Talking to blockpublisher, the crypto enthusiast Thomas Power predicted that till the time the ETF isn’t approved, cryptocurrencies would have weaker brand image and the currencies would fall.
We’re heading for $3,000 before ETF approval.
He went on saying what the ETF would bring for BTC,
SEC will give BTC brand confidence in 2019, rest will follow in 2020 post crash.
Hence predicting that in 2018, SEC would be positive about the ETF proposals and would consider the formation of the Exchange trade fund.